1Mg’s focus is paying off. Spinning off medicine delivery from HealthKart as a strategy is working. They control a stunning 56% of the medicine delivery market. Add to that HealthKart Plus — they have the entire space nicely tied up. Well done there guys. No wonder investors keep throwing cash at them
Practo controls a 4th of the market but then their focus is distributed across lab tests, appointment bookings, online consultancies and medicine delivery. I always believe that Indian customers tend to download one app for one use case. The overlap of use cases tends to confuse us.
Despite raising $16 Million in a series B — PharmEasy’s download footprint is still quite limited. Perhaps the uptick is indicative of a recently acquired war chest? Hmmm…
Which brings me to my next point, some of you wrote in and pointed out that market share by app downloads doesn’t always correlate to revenues.This is true. In the short term, app downloads have very little impact on revenues. Most companies will release a mobile app well before they find product market fit and even once they do it takes awhile to graduate from the curious users to the serious ones. Since investor backed companies can easily acquire market share through discounts and ad spends, it’s over a longer period (one year or more) that real trends start to emerge.
Till that point, App downloads are basically vanity metrics lulling you into a false sense of security.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
